Tech stocks drag ASX to 1.1 per cent loss
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William McInnes
Oil traders have been buying up call options for Brent crude at $US100 a barrel, betting the economic recovery and a supply shortfall could push the price of oil to its highest level in more than six years.
Driven by record levels of stimulus and the global economic recovery, crude has been a particularly strong performer, with producers keeping supplies on the sideline to inflate margins amid subdued demand.
On Tuesday, the price of Brent dipped 0.8 per cent to $US67.77 a barrel, but derivatives traders are betting the price could begin to climb closer to $US90, or even $US100, a barrel in the next few months. However, a rally to triple digits is far from the consensus view.
Sub-prime mortgages are back in vogue
at 12:08 am on May 11, 2021 | 46 comments
As we know, the Australian Bureau of Statistics’ (ABS) latest lending data reported the biggest ever boom in mortgage finance commitments, up a whopping 55% in the year to March 2021:
Australia’s biggest ever mortgage boom.
Amid the mortgage frenzy, there are increasing signs that lenders are dropping lending standards. The latest example came yesterday when NAB owned U-Bank announced that it is offering cheap 15% deposit home loans without borrowers needing lenders mortgage insurance:
UBank chief executive Philippa Watson said reducing the threshold would shave off roughly seven months of saving for home buyers…
Non-major bank offers 85% LVR with no LMI By Annie Kane 11 May 2021
A digital lender has announced that it will only start charging lender’s mortgage insurance on loans of 86 per cent LVR and over.
UBank, the digital bank owned by National Australia Bank (NAB), has announced that it will offer eligible owner-occupiers a home loan without lender’s mortgage insurance (LMI) if they have a deposit of 15 per cent or more.
While LMI is usually required on loans where a borrower has a deposit of less than 20 per cent of the property value, UBank has said that it will now offer LMI-free loans for mortgages that cover 85 per cent of the property value.
Mortgage Business
86 400 shareholders approve NAB deal By Annie Kane 07 May 2021
The shareholders of the neobank have agreed to the scheme of arrangement that would see NAB acquire all the issued share capital in the company.
In January of this year, National Australia Bank Ltd (NAB) announced its intentions to buy the two-year-old neobank for $220 million, with plans to merge the neobank with its own digital subsidiary, UBank.
The Australian Prudential Regulation Authority (APRA) granted approval to NAB to hold a 100 per cent stake in 86 400 Holdings Ltd and 86 400 Ltd last week.
At the 86 400 scheme meeting and general meeting held on Thursday (6 May), it was announced that 86 400 shareholders had now approved the deal.